Aer Lingus to withhold raises in showdown with unions
The Irish airline Aer Lingus said Tuesday it would withhold raises until union leaders dropped their opposition to a cost-cutting plan designed to stave off the threat posed by low-fare carriers like Ryanair. Dermot Mannion, the Aer Lingus chief executive, said the airline would refuse to deliver a series of salary increases because unions were refusing to accept a plan reforming work practices, including overtime pay, designed to save the company ?20 million, or $28.3 million, annually. "We're doing this because we've reached the end of the line. We're not trying to provoke anyone," said Mannion, whose airline is already facing a strike by pilots over its plan to open a new hub - beyond the reach of Irish unions - in the British territory of Northern Ireland.
See "Aer Lingus to withhold raises in showdown with unions", Bloomberg News, The Associated Press, International Herald Tribune, October 1, 2007